Massachusetts Money Transmitter Bond

You need a Massachusetts money transmitter license if you want to operate in the state. The process is conducted via the website of the Nationwide Multistate Licensing System and Registry (NMLS). Among the requirements of the Division of Banks that you have to meet is to post a surety bond. The bond amount is either $50,000 or twice the average weekly amount of transmitted money. The bond ensures your compliance with the Massachusetts Money Transmitter Law.

The minimum bonding amount for obtaining your Massachusetts money transmitter license is $50,000. Your bond price is a fraction of this bond amount, which is called the bond premium. It is often between 1% and 5% of the required bond amount, in case you have solid finances.

Your surety bond cost is based on the examination of a number of personal and business financials. Your surety provider will take into consideration your personal credit score, and in many cases, a review of your audited business financials. You may also have to show personal financial statement or provide cash verification. For money transmitters, the currency you work with may also affect your bond price.

Getting your money transmitter bond with problematic finances can be tough. There may still be an option to obtain the needed bond, but your audited business financials will be the most important factor. The surety underwriter will have to be convinced that the bonding risk is not too high, so the stronger your finances are, the easier it will be.

Would you like to learn more about the way bonding works? Check out our detailed How to Get Bonded page, which provides the most important facts about the process.

Our bonding experts are here to assist you. Have questions or need help? Just reach us at (877) 514-5146.

Unlike insurance, your surety bond does not protect your company. Its purpose is to safeguard the interests of your customers and guarantee your legal compliance. You can end up with a claim against your bond if you don’t abide by the relevant rules and regulations in the state.

The claimants can seek a compensation of up to the penal sum of your bond. On proven claims, the surety may step in to pay the costs to ensure a quick reimbursement. However, you have to repay it soon after, since this is set in the bond indemnity agreement. This makes bond claims financially harmful, so it’s best to avoid situations that can lead to them.